International Speedway Initiates 2007 Financial Guidance
December 14 2006 - 7:00AM
PR Newswire (US)
DAYTONA BEACH, Fla., Dec. 14 /PRNewswire-FirstCall/ --
International Speedway Corporation (NASDAQ:ISCA)(OTC:ISCB)
(BULLETIN BOARD: ISCB) ("ISC") today initiated financial guidance
for the fiscal year ending November 30, 2007. "ISC will continue to
execute its proven business plan to capitalize on the popularity of
major motorsports entertainment in North America," said ISC
President Lesa France Kennedy. "At the industry level, NASCAR
racing is poised to further broaden fan and media awareness in 2007
with several significant developments, including the return of
ESPN. For ISC, we expect continued strength in consumer and
corporate demand for our premier events in 2007 and beyond. We
remain well-positioned to leverage our long-term growth strategy to
further drive the popularity of major motorsports in North America
while enhancing value for our shareholders." Revenues and Earnings
per Share: For the twelve months ending November 30, 2007, the
Company anticipates total revenues to range between $755 million
and $775 million. In addition, earnings are expected to range
between $3.05 and $3.15 per diluted share. This guidance assumes
capitalized interest will be $3 million to $4 million lower for the
2007 fiscal year as compared to expected results for fiscal 2006.
The reduction in capitalized interest of between $0.04 and $0.05
per diluted share for 2007 is the result of an expected 2006 fourth
quarter non-cash write-down of the value of the 676-acre parcel ISC
owns in the New York City borough of Staten Island, as further
described in the Company's press release dated December 4, 2006.
The 2007 guidance does not reflect consolidation of the operating
results of Raceway Associates, LLC ("Raceway Associates"), owner
and operator of Chicagoland Speedway and Route 66 Raceway. As
announced on November 1, 2006, ISC has entered into a purchase
agreement with Indianapolis Motor Speedway Corporation to
indirectly acquire an additional 37.5 percent interest in Raceway
Associates for approximately $69 million in cash. The Company will
also exercise its right to purchase the minority partners'
remaining 25 percent interest in Raceway Associates pursuant to the
1999 Raceway Associates formation agreement. The transactions are
expected to be accretive to revenue and earnings for 2007 and
should close by the end of the first quarter, at which time ISC
will update its 2007 guidance. Margins: Quarter Quarter Quarter
Quarter Year Ending Ending Ending Ending Ending 02/28/07 05/31/07
08/31/07 11/30/07 11/30/07 EBITDA (1) 44% - 45% 39% - 40% 35% - 36%
46% - 47% 42% - 43% Operating 36% - 37% 30% - 31% 26% - 27% 40% -
41% 34% - 35% (1) EBITDA is a non-GAAP financial measure used by
the Company as an important indicator of its operating margin. It
is defined as earnings before interest, taxes, depreciation and
amortization. Major Event Schedule Comparison: First Quarter Second
Quarter Series Name 2006 2007 2006 2007 NASCAR NEXTEL Cup 4 4 5 5
NASCAR Busch 2 2 4 4 NASCAR Craftsman Truck 2 2 1 2 IRL IndyCar 0 0
1 2 ARCA RE/MAX 1 1 0 1 Grand Am Rolex Sports Car 1 1 2 1 AMA
Superbike/Supercross 0 0 3 3 10 10 16 18 Third Fourth Full Fiscal
Quarter Quarter Year Series Name 2006 2007 2006 2007 2006 2007
NASCAR NEXTEL Cup 5 5 7 7 21 21 NASCAR Busch 5 5 5 5 16 16 NASCAR
Craftsman Truck 2 1 4 4 9 9 IRL IndyCar 4 3 1 1 6 6 ARCA RE/MAX 3 1
2 2 6 5 Grand Am Rolex Sports Car 3 4 0 0 6 6 AMA
Superbike/Supercross 0 0 0 0 3 3 22 19 19 19 67 66 Capital
Spending: The Company expects spending for capital projects at its
existing facilities to range between $80 million and $90 million
for fiscal 2007. Spending includes: seat additions and/or
enhancements at Richmond International Raceway and Michigan
International Speedway; land and land improvements at various
facilities for expansion of parking and other speedway uses; and a
variety of other improvements and fan enhancements to ISC's
facilities. It is important to note the above range does not
include capital expenditures associated with: the Company's
facility development projects; business acquisitions; the potential
joint venture retail, entertainment, office and residential project
near Daytona International Speedway; and other external strategic
initiatives. "We continue to make important progress on our
facility development efforts in Washington and look forward to
successfully moving through the state legislative process in 2007,"
concluded Ms. France Kennedy. "In addition, we are excited about
our partnership to host a NASCAR Busch Series event weekend next
year in Montreal -- a market that boasts a rich racing heritage. We
also look forward to closing on the acquisition of Raceway
Associates, as Chicagoland Speedway and Route 66 Raceway will make
valuable additions to our family of premier facilities and events."
Conference Call Scheduled The management of ISC will host a
conference call today with investors at 9:00 a.m. Eastern Time. To
participate, dial toll free 888-693-3477 five to ten minutes prior
to the scheduled start time and request to be connected to the ISC
guidance call, ID number 8196333. A live Webcast will also be
available at that time on the Company's Web site,
http://www.iscmotorsports.com/, under the "Investor Relations"
section. A replay will be available one hour after the end of the
call through midnight Thursday, December 28, 2006. To access, dial
(877) 519-4471 and enter the code 8196333, or visit the "Investor
Relations" section of the Company's Web site. International
Speedway Corporation is a leading promoter of motorsports
activities, currently promoting more than 100 racing events
annually as well as numerous other motorsports-related activities.
The Company owns and/or operates 11 of the nation's major
motorsports entertainment facilities, including Daytona
International Speedway in Florida (home of the Daytona 500);
Talladega Superspeedway in Alabama; Michigan International Speedway
located outside Detroit; Richmond International Raceway in
Virginia; California Speedway near Los Angeles; Kansas Speedway in
Kansas City, Kansas; Phoenix International Raceway in Arizona;
Homestead-Miami Speedway in Florida; Martinsville Speedway in
Virginia; Darlington Raceway in South Carolina; and Watkins Glen
International in New York. Other motorsports entertainment facility
ownership includes an indirect 37.5 percent interest in Raceway
Associates, LLC, which owns and operates Chicagoland Speedway and
Route 66 Raceway near Chicago, Illinois. In addition, ISC is a
limited partner with Group Motorise International in the
organization and promotion of certain events at Circuit Gilles
Villeneuve in Montreal, Canada. The Company also owns and operates
MRN Radio, the nation's largest independent sports radio network;
DAYTONA USA, the "Ultimate Motorsports Attraction" in Daytona
Beach, Florida, the official attraction of NASCAR; and subsidiaries
which provide catering services, food and beverage concessions, and
produce and market motorsports-related merchandise under the trade
name "Americrown." In addition, ISC has an indirect 50 percent
interest in a business called Motorsports Authentics, which markets
and distributes motorsports-related merchandise licensed by certain
competitors in NASCAR racing. For more information, visit the
Company's Web site at http://www.iscmotorsports.com/. Statements
made in this release that express the Company's or management's
beliefs or expectations and which are not historical facts or which
are applied prospectively are forward-looking statements. It is
important to note that the Company's actual results could differ
materially from those contained in or implied by such
forward-looking statements. The Company's results could be impacted
by risk factors, including, but not limited to, weather surrounding
racing events, government regulations, economic conditions,
consumer and corporate spending, military actions, air travel and
national or local catastrophic events. Additional information
concerning factors that could cause actual results to differ
materially from those in the forward- looking statements is
contained from time to time in the Company's SEC filings including,
but not limited to, the 10-K and subsequent 10-Qs. Copies of those
filings are available from the Company and the SEC. The Company
undertakes no obligation to release publicly any revisions to these
forward-looking statements that may be needed to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this
release does not constitute an admission by International Speedway
or any other person that the events or circumstances described in
such statement are material. DATASOURCE: International Speedway
Corporation CONTACT: Wes Harris, Senior Director, Corporate and
Investor Communications, International Speedway Corporation,
+1-386-947-6465 Web site: http://www.iscmotorsports.com/
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